Dubai property developer Deyaar on Thursday reported a surge in third quarter profit while revenues rose 72 percent over the same period on the back of a revival in the emirate’s real estate sector.
The company made a profit of 36.3 million dirhams ($9.88 million) in the third quarter from 8.1 million dirhams in the same period last year. Revenues totaled 207.7 million dirhams, up from 120.7 million a year earlier.
Deyaar Chief Executive Officer Saeed al-Qatami attributed the company’s strong performance to positive trends in the United Arab Emirates’ real estate sector.
Following a pandemic-led slowdown, Deyaar said it had now accelerated construction at two new developments in Dubai which were expected to be ready for handover late this year or in early 2023.
The company’s board on Tuesday recommended shareholders approve a 500 million dirhams cash settlement with another Dubai-based developer, Limitless, which will include a 200 million dirhams payment upon agreement, and the remaining 300 million within 18 months. Shareholders will be asked to decide on the agreement terms at a November 21 general assembly meeting.
Dubai government-owned Limitless, along with Nakheel, was among the biggest casualties of Dubai’s property crash and the subsequent debt crisis that began in 2009. Reuters reported last year that Limitless was set to reach an agreement with creditors over some $760 million of troubled debt.
Dubai’s real estate sector has been resilient amid the rising cost of living and a weaker global economic outlook, with total transactions in September up 33.4 percent from a year earlier, according to a recent report by CBRE.
So far this year, Russia and the United Kingdom have been the biggest origin of investment countries in Dubai’s property market, consultancy Betterhomes said.